Life Insurance Over 60 – are you too old?
Sep 17, 2014
It will probably come as no surprise to you that the older we get, the more expensive life insurance becomes. At the end of the day that is how insurance works; the greater the risk the higher the premium and whether you feel it or not, us oldens get riskier the more we age.
That being said, I often hear people over 60 questioning whether they are too old for life insurance. Well let me put you straight; it doesn’t matter whether you are over 50, over 60 or over 70, you will still qualify for life insurance.
Naturally our reasons for buying over 50 or over 60 life insurance may differ from when we are in our 20s, 30s, or 40s and of course budgeting is usually a prime concern as our incomes reduce through retirement but there are still affordable options available.
Through our lives many of us buy life insurance to cover the cost of the mortgage should the worst happen but eventually there comes a time when this debt has been cleared and the mortgage is paid off, so our need for this particular type of life insurance starts to dwindle.
If you are over 60 or 70 however, you may be starting to think about what is commonly referred to as ‘later life planning’; a term I hate but have to admit is very fitting. Things like making a Will become all the more important to ensure your family are protected and your wishes are met and our need for life insurance is more closely related to such matters as inheritance tax, funeral costs and leaving a legacy for children and grandchildren.
Life insurance for over 60 year olds is potentially a key financial planning tool and should by no means be thought of as too expensive; depending on your needs plans can start from as little as £4 a month.
There are a couple of options open to you that are potentially dependent on the state of your health and lifestyle.
If you prefer a life insurance plan with a simple application process that doesn’t take your medical history into account, then a guaranteed over 50 life insurance plan may be suitable.
If however you are happy to go through a longer application process that includes health and lifestyle questions, then regular life insurance may be worth considering as the life cover available is at least 40% higher; in some cases 80% to 100% greater than you would expect to get with the guaranteed option.
Take a look at the following examples based on a non smoker paying £15 a month and see for yourself:
Age 60 Guaranteed acceptance plan - £3,958 Age 60 Regular life insurance - £6,720
Age 70 Guaranteed acceptance plan - £1,968 Age 70 Regular life insurance - £3,497
Both of these types of plans are known as whole of life insurance; they provide life insurance that lasts for the whole of your life, guaranteeing to pay out a cash sum when you die.
You are fully covered after an initial period of 1 or 2 years and need to continue paying your monthly premiums either until you die or you are 90. The cash sum on these types of plans is typically fixed so inflation will reduce its value over time however some regular life insurance plans also give you the option to increase your cover on an annual basis.
So in answer to the question, life insurance over 60 – are you too old, the answer is probably no; you just need to be sure of your reasons for buying and compare life insurance quotes to get the most suitable plan.